Escrow & Title
In NC, the difference between 'buyer-funded' and 'seller-funded' at closing refers to:
AWho pays the property taxes
BWhether the buyer is bringing cash/funding to close (buyer-funded) or whether the seller owes money at closing (seller-funded)✓ Correct
CWho pays the title insurance premium
DWhether the broker is paid by buyer or seller
Explanation
Buyer-funded closings are standard (buyer brings funds). Sometimes when a seller has little or no equity (or a short sale), the proceeds don't cover closing costs and the seller may need to bring funds to close (seller-funded).
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Math Concepts
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